Investor - Mind Financial Presentation

8/2/2019 Investor - Mind Financial Presentation

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MIND CTI Ltd | August 2016


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This presentation may contain statements that are forward looking. These

statements are based on management's beliefs and assumptions and on

information currently available to management. Forward-looking statements are

not guarantees of future performance, and actual results may materially differ.

The forward-looking statements involve risks, uncertainties, and assumptions,

including the risks discussed in the Company's filings with the United States

Securities Exchange Commission. The Company does not undertake to update any

forward-looking information.

Safe Harbor


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About MIND

MIND is a leading provider of

Convergent, real-time, end-to-end billing and customercare, product based solutions, for Tier 2 & 3 carriers

Call accounting solutions for organizations and largemultinational corporates


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MIND Highlights

A public company (NASDAQ-MNDO)

Headquarters in Israel; Offices in USA, UK and Romania 360+ Employees worldwide

Focus on profitability

Large and growing worldwide customer base

Industry leading partners

Diversified portfolio and revenue stream

Recurrent revenue and long-term order backlog

Experienced management team


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Company Strategy

Focus on product based end-to-end solutions

Increase revenue stream from each market segment:enterprise market, traditional carriers and new carriers

Focus on strategic accounts and channel partners

Expand offering by partnerships

Penetrate new markets

Maintain profitability


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Diversified Billing Customer Base


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MINDBill Solution Differentiators

Truly convergent prepaid and postpaid platform

Comprehensive solution - includes billing, real-time rating for multipleservices, customer care, mediation, provisioning and Point-of-Sale

Prepaid rating capabilities compatible with postpaid flexibility

Extensive experience over 20 years

Proven track record of on-time, on-budget deployments

Scalable, open and expandable architecture

State-of-the-art technology (multi platform support)

Commitment to customer success

Tailored to meet customer needs

Excellent ongoing support


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Call Accounting (CMS) Customer Base


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Call Accounting / Billing PhonEX ONE

A management tool for the control of the corporate

telecommunication expenses Distribute cost per cost centers

Increase awareness

Control/cut expenses

Eliminate misuse and abuse

Monitor personal phone usage

Carrier bill verification

PhonEX ONE is a state-of-the-art product

Comprehensive, flexible, fully web-based solution

Based on MS technology


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PhonEX One Solution Differentiators

20 years of experience with 20,000+ installations

Technology Partners: Cisco, Avaya and Microsoft

High-end solution for multinational corporates

Multi-language and multi-currency support

Proven scalability with over 100,000 users on one system

Full web-based solution using ASP.NET

User friendly

Tailored to meet customer needs

Excellent ongoing support


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Financial Overview


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Investment Highlights

Consistent positive cash flows from operating activities

Strong balance sheet

Long-term relationships and some long-term contracts

Company invests significantly to ensure technology leadership

Strong business model with recurring revenues

Operation margin target of 20%

Dividend policy once a year, a cash dividend will be distributed,

subject to Board review and approval. The amount will be equal to our

EBITDA plus financial income (expenses) minus taxes on income


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Revenue by Year and Cash Flow from Operations

20,060

18,44719,473

17,574

19,88618913

20,209

18,480

25,020

20,928

593

4,6714,112

6,266 6,304

4,3854,936 5,190

3,841

6,297

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Revenue Cas h Flow f rom Operations


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Revenue by Region

14,411

7,164

3,444

11,292

6,697

2,939

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Americas Europe ROW

2014 2015


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Quarterly Revenue Trend

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

License Maintenance Services

5.2

5.7

6.56.56.3

5.7

5.1

4.54.44.4

5.24.8

4.6

4.3


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Revenue by Product Line

($ in thousands)

20,990

4,030

2014

Billing & Customer

Care

Call Management

Solutions

16,567

4,361

2015

Billing & Customer

Care

Call Management

Solutions


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Revenue Distribution

($ in millions)

3.9

7.7

9.3

2015

License

Maintenance

Services

5.4

7.112.5

2014

License

Maintenance

Services


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Quarterly Profit & Loss

($ in Thousands)

Q1 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Revenues $ 4,443 $ 5,697 $ 6,293 $ 6,511 $ 6,519 $ 5,704 $ 5,194 $ 5,211 $ 4,819 $ 4,564 $ 4,330

Cost of Revenues 2,257 2,809 2,895 2,886 2,559 2,454 2,173 2,028 1,975 1,888 1,749

Gross Profit 2,186 2,888 3,398 3,625 3,960 3,250 3,021 3,183 2,844 2,676 2,581

Research & Development 1,190 970 988 606 776 762 650 713 818 991 902

Selling & Marketing 418 327 259 263 291 241 364 289 279 206 266

General & Administrative 438 443 545 567 379 684 299 448 335 357 431

Goodwill Impairment

Intangible Asset Impairment

Operating income (loss) 140 1,148 1,606 2,189 2,514 1,563 1,708 1,733 1,412 1,122 982

Impairment of ARS

Other Financial income 133 74 98 (348) (130) (289) 155 28 (8) 260 79

Income (loss) before taxes 273 1,222 1,704 1,841 2,384 1,274 1,863 1,761 1,404 1,382 1,061

Taxes 111 222 254 706 486 369 277 313 325 208 26Net Income (Loss) $ 162 $ 1,000 $ 1,450 $ 1,135 $ 1,898 $ 905 $ 1,586 $ 1,448 $ 1,079 $ 1,174 $ 1,035

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